58% ., Oct 1 Screen Shot 2018-10-12 at 6.08.25 PM s LO16-1g, L016-4. LO16-5 You are the new controller for Engineered Solutions. pending legislation, the current 40% apply in determining deferred taxes for 2018. Patey also is uncertain which differences determination and has solicited your help. Your accounting group provided you the following information The company treasurer, Randy Patey, believes that as a result of income tax rate will be decreased for 2019 to 35% and is uncertain which tax rate to should be included in that Two items are relevant to the decisions. One is the S50,000 insurance premium the company pays annually for the CEO's life insurance policy, for which the company is the beneficiary. The second is that Engineered Solutions purchased a building on January 1, 2017, for $6,000,000. The building's estimated useful life is 30 years from the date of purchase, MACRS method for tax purposes. As a result, the building's tax basis is $5,200,000 at December 31, 2018. Required: Write a memo to Patey that a. Identifies the objecti ves of accounting for income taxes b. Differentiates temporary differences and permanent differences c. Explains which tax rate to use d. Calculates the deferred tax liability at December 31, 2018 When finished, make sure to click Submit. click Save as Draft to save changes and continue working later, or click Cancel to quit without saving